The demand for bitcoin has risen sharply in Venezuela

Against the backdrop of the raging hyperinflation in Venezuela, the demand for cryptocurrency, which local residents buy through the p2p-site LocalBitcoins, soared.

On the chart above, you can see that the jump in demand for “digital gold” has occurred over the past few weeks.

For a long time already, suffering from a deep economic crisis and hyperinflation, Venezuela is on the verge of a social catastrophe. The situation in the country is aggravated by international sanctions and irrational economic policy of the state. This entails a sharp drop in the standard of living of the population, a shortage of foreign currency and even essential goods.

According to the International Monetary Fund, the expected inflation rate in Venezuela this year will be 14,000%. Thus, it is not surprising that an increasing number of residents of this oil-rich Latin American country see in bitcoin a reliable means of preserving value, much more stable than a local bolivar.

Recall, in February, the Venezuelan national cryptocurrency El Petro (backed by oil) was issued, designed to help circumvent international sanctions and help restore the country’s economy. Source: forklog.com